Plan 2 Prosper

Saving for the future

• Do you want to build your wealth and pay less tax?
• Are you saving for your child or grandchild’s future?
• Do you wish to retire earlier?

An investment bond can help you achieve your long-term goals tax-effectively.

Investment bonds provide you with an opportunity to build your wealth over the long term in a unique tax environment by investing in a range of investment options that are managed by professional fund managers. 

Dan Smith of Plan 2 Prosper says, “The great aspect about investment bonds is they suit a range of different investors: high income earners looking to minimise income tax or fund an early retirement, parents or grandparents wanting to save money for their children, or business owners wanting ownership flexibility and protection of their assets against the risk of bankruptcy.” (more…)

One of the greatest stresses that most of us face concerns our finances.

I have come to a realisation that many of the financial concerns people see me about are caused by the way they think, and that is what I need to work with them on reviewing. The way we, as individuals, think is something that can be controlled, as unlike the weather, the price of fuel or the short term volatility in global and domestic markets. (as an aside many an astute investor with cash available is buying back in at the moment - wish I had more available to contribute than I am currently).

The future belongs to those who are building a diversified asset base that creates passive income. Assets put more money in your pocket. Liabilities take money out of your pocket. As you’d likely know the only good debt is debt that is used to fund income generating assets (and even then its debt that we all wish we didn’t need to have).

One of the major goals we all have when creating wealth is to have your assets throwing off more money than your expenses. If the investments you have - the ones you don’t need to actively work in - are throwing off more “passive” money than your cost of living, then you are well and truly on the road to further wealth creation and real achievement of personal goals and objectives. 

Part of you may well be thinking; “It’s alright for you .”, “We could never do that”, “It’s different for us because ….”.

If that’s what part of you is thinking right now, then that is the first ceiling we need to remove in order to have the right mindset. Successful people in all fields and endeavours (not that you aren’t already successful, but with some disciplined income diversification strategies you could be even more so) don’t say to themselves, “I could never do that, I could never afford that, it could never happen to me”.

Interviews with many successful people reveal they think, “How could I make this happen, in what ways could I afford this, what do I need to do today to start moving towards it?”

Hopefully the other side of your mind is saying, “Well what if this is true? What if I gave it a go?”

It’s a simple enough process requirement but human nature doesn’t allow us to make it easy to establish your budget, confirm your income and expenditure, assets and liabilitities - although these are all things you’d likely have good control of.

Then its all about implementing a smart cashflow management system to capture any spare cashflow on a regular and disciplined basis and harnessing it toward assets that will produce more passive income. Over time, the idea is that these assets will grow and produce more and more passive income so the cycle of passive wealth creation can continue evolving.

As a guide we could implement a regular investment plan in diversified managed funds with as little as an initial investment of $2000 and ongoing regular investment of $200 per month.

Please have a think about it. If you’re interested I’d be happy to set aside more time to explore in more detail the positive outcomes, potential opportunities and allay any concerns relevant to your own situation.

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
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Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

Mention the name George Lucas and most may think of the STARWARS saga and the epic fight between good and evil … use the force Luke, the republic, the rebellion and much much more … sorry I digressed to childhood memories … on this occasion though I would like to draw your attention to a recent opinion piece published in the Money Management Magazine by another George Lucas.  The point of view offered by George Lucas - Managing Director of a boutique asset manager was well put and can be read at the following link: You can’t regulate against Greed.

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
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Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

Have you as parents ever considered what would happen if you weren’t there to make important decisions about your childrens welfare, upbringing, lifestyle? Would your childrens guardians (assuming you have thought about this also) know what you wanted for them?

You may have provided for your children’s needs financially through an estate planning process including such solutions as life insurance and preparation of wills. Whilst I applaud you for having done that much, there is much more to your children’s welfare than just the $$$.

During a recent visit to my own solicitor I collected a brochure with information for parents about a “Guideline for the Guardians of your Children” document. This document contains a set of guidelines or instructions for those whom you as parents - or as sole single parent - appoint as guardians of your children. It ensures that those who have responsibility for the care and nurturing of your children to adulthood will know what you want for your children - if you are not there for them yourself. (more…)

You work hard for your money - your money should work hard for you.

What an inspirational nugget of gold … it’s in practically every banking and investment ad, every online get-rich-quick-scheme …as we all know, it’s often easier said than done. (more…)

In The Big Shift author Bernard Salt provides an articulate interpretation of the settlement of the Australian continent, charting the shifts and shuffles that have made us who we are over the past 200 years.

He chronicles Australia from the unique bush culture of the swagman, to today’s world of boomers, Xers and Dotcoms, and goes on to consider the rise of suburbia on our national psyche and maps out the likely influences on Australian culture over the early decades of the twenty-first century. Many others have built on or offered alternative commentary on phenomena such as Tree change and Sea change. In an earlier post (“Is a tree or sea change the right retirement option?” ), we investigated some of those considerations that ought to be given far more time and attention. 

Xanthe Kleinig recently provided an update (Meet the Overseas changers … ) on vast numbers of Australian retirees refinancing so they can spend their twilight years living like kings in foreign lands, in an international version of the “seachange” trend.

Whilst for many, moving away may mean long held dreams fulfilled, it does need to be given careful consideration. An alternative to selling, moving and finalising ownership of their current home may be to consider renting out the family home for a year or two. While renting the family home out, move to your desired location and rental accomodation there … dip a toe in the water and try before you buy. In this case, if the sea, tree or international change isn’t what it was planned to be, a return to the family home is available minimising the effects on original living arrangements.

More than anything else, plan so that you have choices if things don’t quite go to plan. 

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and based in Rockhampton. For many people he has become their trusted adviser and Financial Planner. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

In times like these, everyone claims to have the answers on how we can trim the household budget to help make way for the rising cost of living.

It’s easy to declare that getting rid of the morning espresso, or buying groceries in bulk from discount warehouses, are the answers to cutting costs. But what if there’s an easier way? Where does the bulk of our spending really go? (more…)

I found a poem in a box of my Grandfathers knick nacks while I was helping clear out his garage recently. I thought the poem had some relevant messages for us all and as such I’d like to share it with you. The poem is titled “Sermons we see”: 

I’d rather see a sermon than hear one any day.

I’d rather one should walk with me than merely show the way.

The eye’s a better pupil and more willing than the ear,

fine counsel is confusing, but the example’s always clear;

and the best of all the preachers are the men who live their creeds,

for to see the good in action is what everybody needs.

I can soon learn how to do it, if you’ll let me see it done.

I can watch your hands in action, but your tongue too fast may run.

And the lectures you deliver may be very wise and true;

but I’d rather get my lesson by observing what you do,

for I may understand you and the high advice you give,

but there’s no misunderstanding how you act and how you live.

 - Edgar A. Guest

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

Today’s twenty something generation - Generation-Y or Gen-Y as they’re known - are renowned for being optimistic go-getters. Born between 1976 and 1991, these children of baby boomers are often described as being unrealistically optimistic and over-confident about life, particularly around financial matters.

Perceptions are often reality …

Gen-Y are perceived as being happy to rely on ‘Bank Boomer, ‘Family ATM’, ‘The M&D Bank’ to prop up their lifestyle, especially during this economic downturn. With tags such as ‘helicopter kids’, ‘Kidults’ and ‘boomerang kids’, who just keep coming back to their parents for further assistance, Gen-Y are fast becoming “Kids In Parents Pockets Eroding Retirement Savings” - KIPPERS. In the past, our Baby Boomer parents were pretty confident that they could sustain not only their lifestyle but, if things went wrong with their Gen-Y sons and daughters, that they could also help them out. Sadly, for many that confidence is gone, and is no longer a practical reality.

By nature of the year of my birth, I am a member of Gen-Y (only just).

Unlike previous generations, such as our baby boomer parents, credit has been all too readily available and we stand accused of failing to understand the ramifications of our spending habits and potential impact of escalated debt levels, particularly given the effects of the global financial crisis.

Recognised by many as the driving force for tomorrow’s economy, many of our number are financially uneducated and paralysed by debt. Gen-Y has its fair share of entrepreneurs and many have, or are looking to, start their own business. Basic budgeting, business planning and accounting advice will be beneficial in this respect to provide that initial foundation on which to build a sustainable business.

Now with increased unemployment and vulnerability in the economy, Gen-Y has received a much needed wake -up call. It’s great that this wake-up call has been received now, rather than in our early 40 and 50’s … much more time is on our side … I urge you now to take action and review or rethink your current and future financial strategies. I only hope you (Gen-Y) were listening when the wake-up call came and didn’t rollover for another sleep. (more…)

We’ve all heard the saying by Benjamin Franklin: “In this world nothing can be said to be certain except death and taxes.” I’m sure you would agree that this quote is as true today as it was in Franklin’s day when he first penned it in a letter. While a touch on the morbid side, my good news reminder to you is that implementing sustainable life insurance can help you minimise the financial impact of both of these certainties.

Now onto the topic of aged care in Australia. This is a topic that my own family has had recent personal experience. This recent personal experience has reinforced to me that that looking into the costs and legislation associated with moving an elderley person into care can be quite complex and requires careful financial planning. It also reminds me of an earlier post from 2007 : “A Lesson from Home and Away - Sunset Planning“. A balance is also required, as often is proven and observed, the best outcome financially may not be the best outcome emotionally. (more…)